In our previously published article on 22nd Aug, the factors to favor the bears were minimum while the probability for Litecoin to break above our major resistance 188.25 were more because If we draw our fibb levels from daily high to daily low, LTCUSD was standing above 23.6% which was a sign that the hawks were consolidating themselves within the range of 159 and 186. A short bearish reversal was made towards 165 with an extended consolidation like behaviour in interday timeframes - marking the levels as strong support zones for gaining grounds towards more hawkish gains. Earlier today, the Litecoin price triggered a double top pattern or a cup and handle pattern. The vital level to watch was the June 4 and August 23 highs at approximately $194.29.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

 While the two highs did not align perfectly, the price action following the break to $194.29 shows that this level was significant. The two chart patterns, which share the same price objective of $280.82, will now remain in play as long as the LTCUSD trades above today’s low of $178.93. For traders that bought LTCUSD at the breakout point at $194.29, the risk-reward ratio is 5.52, or an upside of 44% and a downside of 8%. Traders that did not buy already will need to wait for a correction toward the breakout unless they would like to trade at a lower risk-reward ratio. The relative strength index on daily and interday time frames are showing highly overbought conditions with LITECOIN standing a few points below 50% fibb retracement level. Temporary bullish momentum could make LTCUSD reach towards 250 price action - which most probably will be followed by a bearish corrective structure before going for any further gains. 

LTCUSD

Sep 06 2021

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